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HRD climate in selected public sector banks in

El clima de desarrollo de recursos humanos en bancos seleccionados del sector público en la India

Author1 GUPTA, Dipak Kumar

Author2 JENA, Duryodhan
Author3 SAMANTARAY, Anup Kumar
Author4 DAS Subhankar

The human resource development (HRD) climate is very important for any organization towards
growth and development. In this study, the perception of employees with respect to HRD
climate prevailing in to selected public sector banks is studied. It covers all the dimension
of HRD climate divided into general climate, OCTAPACE culture and HRD mechanism. The
data were collected from 100 employees through well defined and structured
questionnaire comprising of 38 items. The findings revealed that the HRD climate in public
sector bank is good (average) and the perception of officers towards the climate was not
deferring significantly with respect to gender, qualification and designation except age.
key words
HRD climate, Public Sector Bank, HRD Mechanism

Resumen or Resumo

El clima de desarrollo de recursos humanos (DRH) es muy importante para cualquier organización
hacia el crecimiento y el desarrollo. En este estudio, se estudia la percepción de los empleados con
respecto al clima HRD que prevalece en los bancos seleccionados del sector público. Cubre toda la
dimensión del clima HRD dividido en el clima general, la cultura OCTAPACE y el mecanismo HRD. Los
datos se recopilaron de 100 empleados a través de un cuestionario bien definido y estructurado que

Research Scholar, Siksha ‘O’ Anusandhan (Deemed to be University), Khandagiri, Bhubaneswar, Odisha, India.
Mobile: +91-8895427393. Contact e-mail
Associate Professor, Institute of Business and Computer Studies (IBCS), Siksha ‘O’ Anusandhan (Deemed to be
University), Khandagiri, Bhubaneswar, Odisha, India. Mobile: +91-7978462767. Contact e-mail
Professor and Dean, Institute of Business and Computer Studies (IBCS), Siksha ‘O’ Anusandhan (Deemed to be
University), Khandagiri, Bhubaneswar, Odisha, India. Mobile: +91-9090080871. Contact e-mail
Research Scholar, Siksha ‘O’ Anusandhan (Deemed to be University), Khandagiri, Bhubaneswar, Odisha, India.
Contact e-mail
consta de 38 ítems. Los hallazgos revelaron que el clima del DRH en el banco del sector público es
bueno (promedio) y que la percepción de los funcionarios respecto del clima no difería
significativamente con respecto al género, la calificación y la designación, excepto la edad.

Palabras clave or Palavras-Chiave

Clima HRD, Banco del Sector Público, Mecanismo HRD

1. Introduction

Human Resource Development (HRD) is one of the important processes for organizational
growth and sustainability. The liberalization towards banking operation is bound to create a
favourable climate for the growth of the economy and banking in the State of Odisha. Banks
may have to throw away the traditional banking practices and procedures and make them
fit to face the technological explosion entering into the banking industry. One organization
can able to meet the challenges by acquiring and utilizing valuable, scare and inimitable
resources (Barney, 1991). Human resources are categories particularly depend on effective
deployment of HR practice and careful management of organizational culture (Barney and
Wright, 1998). The HRD sub-system of the banking organization should be transparent and
suitable for the changing need of the employees (Shweta mittal, 2013). Venkataratnam
(1999) mentioned in his study of HRD Climate that human resources potential and their skill
development are two important component of HRD. Sharma and Purang (2000) in their
article focus on Institutional value & HRDC on the Navaratna categories of PSU. It was
observed that there is a positive relationship between two concepts. Better and more
ethical environment of organization should leads better HRD climate for an organization.
Chalam and Srinivas (2005) was focuses on attitude of HRD climate and Gender wise
perception in Indian banking industry and tried to test HRD climate disagreement in some
selected branches of State Bank of India. Vijaya Banu (2007) tried to study the HRD climate
with respect to cement industries and found out that HRD climate is play significant role
under new economic condition with respect to Indian PSU towards growth and
development. As per the analysis of Kumar and Patnaik (2002), it was revealed that HRD
climate and job satisfaction shows positive relation which in turn leads to favorable human
resources practice. Lafollete & Sims (1975) in their study found that more consultative and
open orientation brings positive attitude among employees towards the job. Forehand and
Gilmer (1964) study was based on the perception of organization culture and satisfaction of
employees. They have concluded that personality factors had great role towards satisfaction
of individual’s need.

1.1. Human resources development

It is a process by which the employees of an organization are helped in a planned

continuous process to acquire capabilities required to perform various functions connected
with their present and future roles, develop their general capabilities and hidden potentials
which is needed for their own as well as for the organizational development and develop an
organizational culture in which supervisor subordinate relationship, team work and link
between different sub units are strong which contributes for professional well being, strong
motivation. HRD provides a strong platform for an employee to grow and play an important
role for the growth of the organization. Effective HRD must be able to balance a number of
considerations in order to deliver effective outcomes. According to Mclean and Mclean
(2001) as “any process or activity to develop a adults’ work based knowledge, expertise,
productivity and satisfaction, whether for personal or group / team gains, or for the benefits
of an organization, community, nations or ultimately, the whole of humanity,”
1.2. HRD climate

HRD climate is a component of the organizational climate. Joyce& Slocun jr., (1984) was
discussed on Climate at level of individual is the summary of perception of the
organization’s work even is descriptive rather than evaluative in nature.HRD climate reveals
the perceptions of the employees on the developmental environment in an organization.
HRD climate has been developed by Rao and Abraham (1986). HRD climate plays vital role in
ensuring competency, motivation and development of an organization (Patel, 2005).

HRD climate towards its impact on performances can be represent in following manner
 Every individual should contend Stimuli.
 Individual was performed under certain constraints.
 Reward and punishment should be attached with HRD.

HRD climate in the organization should encourage two position I.e. middle and senior
managers. (Krishna and Rao, 1997)

1.3. HRD in Banks

The banks’ policy makers have realized that the Human Resources or the personnel have to
play a vital role for the development of banking industry. Effective utilization of the
recruited personnel is keys to the successful management in banking industry. HRD acquires
special meaning industry in banking industry due to a variety of factors like a labor intensive
industry. Job security, job satisfaction is quite high in the present era of competition. This
apart the high quality of banking services and the objectives of banks in achieving the social
and economic goal depend on involvement of the employees. The key factors for successful
management in banking business depends on right and effective placement of young blood
those who are recruit for these purpose (Rao, 1993). Therefore, present study tried to find
out the perception of employees towards Human resources development climate in banking

1.4. Objectives

The major objectives of the study are as follows

a) To assess the perception of junior management and middle management grade officers
towards general climate of banks.
b) To assess the perception of junior management and middle management grade officers
towards OCTAPACE culture.
c) To assess the perception of junior management and middle management grade officers
with respect to HRD mechanism.

2. Methodology

As per the need of the study the data were collected from two selected public sector banks
i.e. state bank of India (SBI) and UCO bank from twin city of Cuttack and Bhubaneswar in
Odisha. The HRD climate questionnaire developed by Roa and Abraham (1985) was
administered to collect data from 100 respondents (74 from SBI & 26 from UCO bank)
comprising of junior management (JM) and middle management (MM) grade officers. The
instruments consisting 38 questions on a 5 point scale ranging from 5 (almost always true)
to 1 (not at all true) was used to measure the elements of HRD climate which has been
grouped into 3 broad categories i.e. general climate, OCTAPACE culture and HRD
mechanisms (Solkhe & Chaudhary, 2011). With respect to the development of employees,
the general climate refers to support provided by top management. The OCTAPACE culture
depicts the degree of Openness, Confrontation, trust, Autonomy, Pro-actions, Authenticity,
and Collaboration and at what extent the organization promoting these values. The HRD
mechanism of organization belongs to HR sub system i.e. performance appraisal, potential
appraisal career planning, performance reward, feedback and counseling, employee’s
training, employee welfare towards better work life and job rotations. For data analysis,
various statistical measures such as mean, standard deviation and t-test have been used.
The reliability test was run for both SBI and UCO banks and the Cronbach’s Alpha was 0.923
and 0.939 respectively.

3. Results

3.1. General climate

The perception of the respondents of both of the banks (SBI and UCO) was compared on
the basis general climate by using the t-test statistic.


Ho1 : There is no significant difference between general climate scores of SBI and
UCO Bank.

Ha1 : There is significant difference between general climate scores of SBI and UCO

Table 1: Group Statistics for general climate

General N Mean Std Std. Error

climate Deviation

SBI 74 3.0128 0.16250 0.01602

UCO 26 1.3706 0.10409 0.1234S

Hypothesis t-test value Mean difference Std. Error Sig. Result @10%
Ho1 1.8738 0.07465 difference
.001 Reject.

It is revealed from the Table 1 that the null hypothesis is rejected , which means that there
is a significant difference between the perceived general climate of SBI and UCO bank .Thus
general climate in SBI is better as compared to UCO bank . it is because of the top
management of SBI is more concerned about the development of their employees than to
that of UCO bank .

3.2. OCTAPACE culture

This culture includes both receiving and giving suggestion, criticism and feedback. Trust,
authenticity and autonomy is very important to enable a person / worker to execute his/her
plan. Collaborating with others and experimenting with new approaches to solve problems
is very vital in OCTAACE culture. The analysis of this approach is presented in Table 2.

Ho2 : There is no significant difference between OCTAPACE scores of SBI and UCO
Ha2 : There is significant difference between OCTAPACE scores of SBI and UCO Bank.

Table 2: Group Statistics for OCTAPACE

Nos. Mean Std. Deviation Std. Error mean

OCTAPACE SBI 74 3.0128 .16257 0.01602

UCO 26 1.3706 .10831 0.1234

Hypothesis t-test Mean St. Error Sig. Result

Value Difference difference
0.231 Accept
0.458 0.0746 .03215

It is evident from the above table that there is no significant difference between OCTAPACE
scores of SBI and UCO bank. Thus, it can be stated here that perceived climate of openness,
trust, authenticity, autonomy, collaboration and experimentation was the same in both of
the banks.

3.3. HRD mechanism

In this section, HRD mechanism of the public sector bank has been measured which
consisting of HRD sub-system such as performance appraisal, performance reward,
potential appraisal, career planning, feedback and counseling, training, employee welfare
and job rotation. The calculation of HRD mechanism of SBI and UCO bank is presented in
Table 3.

Ho3 : There is no significant difference between HRD mechanism scores of SBI and UCO
Ha3 : There is significant difference between HRD mechanism scores of SBI and UCO


N Mean Std. Deviation Std. Error Mean

HRD SBI 74 2.8882 0.25784 0.02540

UCO 26 1.3422 0.123638 0.01406

Hypothesis t-test- Mean Std. Error Sig. Result @10%

value Difference Difference
Ho3 0.041 Reject
1.768 0.02501 0.02501

It is found from the table that H 03 IS rejected which proves that there is no significance
between HRD mechanism scores of SBI and UCO banks. Thus the perceived HRD mechanism
in SBI is better than UCO bank.

3.4. Overall HRD climate

The overall HRD climate of SBI and UCO bank was assessed by using 38- items of HRD
climate questionnaire to know the development of the organization and the analysis
presented in Table 4.


Ho4: There is no significant difference between overall HRD climate scores of SBI and UCO

Ha4 : There is significant difference between overall HRD climate scores of SBI and UCO


N Mean Std Deviation Std. Error mean

Overall SBI 74 3.1520 0.17100 0.01685


Climate UCO 26 1.4121 0.107411 0.01176

Hypothesis t-test Mean Std Error Sig. Result @ 10 %

Value Difference Difference
Ho4 0.015 Reject
2.014 0.04983 0.02251

The above table shows that the hypothesis of overall climate is rejected. Thus, the overall
climate scores of SBI and UCO bank differs significantly. Therefore the perceived climate of
SBI is better than UCO bank

4. Conclusions (Only capital initial letter)

It is revealed from the present study that the general climate of State Bank of India is better
with compare to UCO bank. Therefore, the top management of UCO bank has to be more
concerned and careful for the development of their officers. As regards OCTAPACE culture
both of the banks found to be at the same level whereas the HRD mechanism system is
better than to that of UCO bank. So HRD sub-stems needs to be more transparent for the
officers of the UCO bank towards overall organizational development.

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